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NEW QUESTION: 1
Stanley Bostwick, CFA, is a business services industry analyst with Mortonworld Financial. Currently, his attention is focused on the 2008 financial statements of Global Oilfield Supply, particularly the footnote disclosures related to the company's employee benefit plans. Bostwick would like to adjust the financial statements to reflect the actual economic status of the pension plans and analyze the effect on the reported results of changes in assumptions the company used to estimate the projected benefit obligation (PBO) and net pension cost. But first, Bostwick must familiarize himself with the differences in the accounting for defined contribution and defined benefit pension plans.
Global Oilfield's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Excerpts from the company's annual report are shown in the following exhibits.
Assume for this question only that economic pension expense for the year ended 2008 was €4,250.
Ignoring income taxes, which of the following statements best describes the adjustment necessary for analyzing Global Oilfield's cash flow statement?
A. Increase operating cash flow €5,000 and decrease financing cash flow €5,000.
B. Increase operating cash flow €750 and decrease financing cash flow €750.
C. Decrease operating cash flow €2,084 and increase investing cash flow €2,084.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Economic pension expense represents the true cost of the pension. If the firm's contributions exceed its economic pension expense, the difference can be viewed as a reduction in the overall pension obligation similar to an excess principal payment on a loan. Pension contributions arc reported as operating activities in the cash flow statement while principal payments are reported as financing activities. Thus, the adjustment involves increasing operating cash flow by €750 (€5.000 employer contributions - €4,250 economic pension expense) and decreasing financing cash flow by the same amount. (Study Session 6, LOS 22.e)
NEW QUESTION: 2
You have a table named Sales that has three columns named OrderDate, OrderNumber, and SalesAmount.
You need to create the PivotTable as shown in the following table.
What should you use?
A. KPIs
B. sparklines
C. conditional formatting
D. banded rows
Answer: A
NEW QUESTION: 3
HOTSPOT
You have five client computers that are configured as shown in the following table.
You verify that each computer supports the installation of the 64-bit version of Windows 8.1 Pro.
You need to identify which method to use to deploy the 64-bit version of Windows 8.1 Pro to each computer. The solution must minimize the need to reinstall applications and to reconfigure settings.
In the table below, identify the correct deployment method for each computer. Make only one selection in each row. Each correct selection is worth one point.
Answer:
Explanation:
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